Czech crown dips, continues to lag region

PRAGUE, Sept 15 (Reuters) - The Czech crown dipped slightly on Friday after recovering from near eight-week lows against the euro in the previous session, underperforming the region as fears over the fiscal situation continued to undermine the currency.

The crown traded 0.2 percent weaker on the session at 28.490 per euro <0#EURCZK=> by 1510 GMT, following a rebound from Thursday's low of 28.565.

"The euro/crown exchange rate remains to be limited by the technical resistance at 28.60 where we see strong hedging activity of Czech exporters who are taking the opportunity to hedge their euro receivables for 2007," said Komercni Banka analyst Jan Vejmelek.

A Reuters poll showed on Friday 15 out of 24 analysts forecast the central bank will keep interest rates unchanged this month despite data pointing to inflation pressure and central banker Miroslav Singer's comments suggesting there would be deep discussion on a hike when policymakers meet on Sept. 27.

All but three analysts in the poll however expect at least one 25 basis point hike by the end of the year.

The crown has retreated from a life-time high of 27.955 per euro hit in early August, hurt by investor concerns about weakening export momentum and limited prospect of bold reforms to curb a burgeoning budget deficit. ----------------- MARKET SNAPSHOT AT 1510 GMT ----------------- Crown/euro <EURCZK=> last deals at 28.490 (-0.21 pct) Crown/dollar <CZK=> at 22.513 bid (-0.88 pct)

5-year yield due Oct 2010 <CZ5YT=RR> 3.65 pct bid (-1 bps) 10-year yield due Jan 2016 <CZ10YT=RR> 3.89 pct bid (-1 bps)

5-yr CZK/EUR mid yield spread <DE114147=> -4 bps (vs -4) 10-yr CZK/EUR mid yield spread <DE113529=> 12 bps (vs 11)

Current levels versus prior domestic close at 1500 GMT --------------------------------------------------------------- ((Reporting by Jan Lopatka, editing by Ian Jones; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

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Keywords: MARKETS CZECH CROWN CLOSE